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What Consumers Tell about a Product in Word-of-Mouth Communication : The Effects of Valence of WOM,Tie Strength,and Presentation Format

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Authors

Ryu, Gangseog

Issue Date
1999-09
Publisher
서울대학교 경영대학 경영연구소
Citation
경영논집, Vol.33 No.3, pp. 140-181
Keywords
140-181
Description
1999-09
Abstract
This paper investigates what type of information is likely to be transmitted in word-of-mouth communication (WOM) flows as a function of three factors: (l)

valence of WOM (positive vs. negative WOM). (2) type of social relationship between the communicator and the recipient (strong vs. weak ties). and (3)

presentation format of the information (an overall rating is included vs. excluded l. Toward this end. information is classified according to (l) level of abstractness ([actual details - elaborations - abstractions - global evaluations)and (2) consistency with the theme of \NOM (consistent and inconsistent).

Then. hypotheses are developed based upon previous research on rumor.

dissatisfaction. negativity bias. the NUM effect. confirmation biases. and social networks. These hypotheses are tested in a 2x2x2 laboratory experiment using e-mail with one hundred and fifty-one subjects.

The results show that different types of information are transmitted in WOM

as a function of the experimental factors. Several key findings emerge. First. more factual details and less global evaluations are transmitted in positive than negative \NOM. and to strong than weak ties. Second. the study emphasizes the asymmetric impact of negative information on various dimensions of information transmission. For instance. negative-inconsistent information is less

likely to be omitted than positive-inconsistent information. Third. the effect of valence of information is moderated by overall rating. In a number of instances. the confirmation biases induced by the overall rating reduce or reverse the differential impact of negative information. Fourth. consistent with the previous findings of social network research. subjects with strong and weak ties behave differently in WOM. That is. more inconsistent information is transmitted when the recipient is a strong tie than a weak tie. In addition. the different behavior across tie strength is moderated by the valence of WOM.

indicating that. for instance. the difference between positive and negative WOM is greater for strong ties than weak ties.
ISSN
1229-0491
Language
Korean
URI
https://hdl.handle.net/10371/54690
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